IMF Deal Extension Unlocks $145M for Zambia
The Zambian government has announced a one-year extension of its International Monetary Fund (IMF)-supported economic reform programme, in a strategic move aimed at safeguarding the country’s economic recovery and maintaining the trust of lenders, investors, and development partners.
Speaking during a media briefing in Lusaka today, Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, emphasized that the extension is vital to preserve the momentum achieved since the programme’s inception in 2022.
“This decision reflects our unwavering commitment to prudent economic governance. The IMF’s continued involvement sends a strong signal to our creditors and stakeholders that Zambia is serious about long-term reforms,” Dr. Musokotwane said.
The Minister revealed that the programme’s extension will unlock an additional US$145 million in IMF funding and secure over K4 billion in donor contributions towards the 2026 national budget.
Dr. Musokotwane also acknowledged that while Zambia has made meaningful strides in restructuring external debt, the government now faces mounting pressure from maturing domestic debt instruments such as treasury bills and government bonds.
The extension comes as Zambia continues efforts to stabilise its economy following years of fiscal stress, ballooning debt, and economic shocks triggered by the COVID-19 pandemic and global market disruptions.
The IMF-supported programme, initially approved in 2022, has played a crucial role in restoring macroeconomic stability, improving debt transparency, and promoting inclusive growth.
